Surprise May Exports Prompt Institutional 'Buying'... KOSPI Rises for Third Consecutive Day

On the 1st, dealers are busy working in the Hana Bank dealing room in Euljiro, Seoul, where the KOSPI index is showing strength thanks to institutional buying. Photo by Moon Honam munonam@

[Asia Economy Reporter Ji Yeon-jin] On the afternoon of the 1st, the domestic stock market continued its upward trend due to improved export performance in May. The KOSPI market maintained the 3200 level with institutional buying amid profit-taking by individual and foreign investors, while the KOSDAQ showed a firm rise as individual investors continued buying.

As of 1:33 PM, the KOSPI index stood at 3,221.25, up 17.33 points (0.54%) from the previous day. Individuals sold a net 510.7 billion KRW and foreigners sold 165.8 billion KRW, but institutions purchased about 681.6 billion KRW, driving the index higher. The KOSPI has recorded gains for three consecutive days since the 28th of last month.

On this day, stocks with clear earnings improvement led significant price jumps on the KOSPI. Daewoo Shipbuilding & Marine Engineering (8.75%), Hyundai Mipo Dockyard (5.32%), and Samsung Heavy Industries (5.79%) surged on expectations of rapid earnings improvement this year. S-Oil, regarded as the biggest beneficiary of this year's oil price rise, rose more than 7%, reaching an intraday high of 101,000 KRW and setting a new 52-week high.

Among the top 10 market capitalization stocks, Kakao showed the largest gain with a 2.44% increase from the previous day, followed by Naver (1.24%) and SK Hynix (1.18%) showing strength. Conversely, Samsung Biologics (0.83%), Samsung SDI (-0.16%), and Celltrion (-0.55%) showed weakness.

The KOSDAQ index rose 1.44 points (0.15%) to 983.22. Individuals were net buyers of about 130.3 billion KRW, while foreigners and institutions were net sellers of 40.9 billion KRW and 76.4 billion KRW, respectively.

Among the top market capitalization stocks, HL Biopharma rose more than 3%, while Kakao Games (0.57%), EcoPro BM (-1.20%), and Seegene (1.03%) also showed upward trends. On the other hand, Celltrion Healthcare (-0.83%), Celltrion Pharm (-0.57%), and Pearl Abyss (-1.65%) showed weakness.

South Korea's exports in May, announced on this day, amounted to 50.7 billion USD, a 45.6% increase compared to the previous year. Semiconductors (+24.5%) surpassed 10 billion USD in export value for the first time since 2018, and automobiles (+93.7%) recorded the highest export value since 2016 despite supply chain disruptions caused by a shortage of automotive semiconductors.

Petroleum products (+164.1%) and petrochemicals (+94.9%) also continued significant growth due to rising oil prices and demand recovery. NH Investment & Securities researcher Jeong Yeogyeong explained, "In particular, petroleum products are noteworthy due to increased travel demand in developed countries following vaccine distribution," adding, "As airlines increase routes, demand for transport petroleum products such as jet fuel has risen."

This content was produced with the assistance of AI translation services.